Rising for the third straight session, the BSE's 30-share barometer rose by 69.40 points, or 0.34 percent, to 20,100.17. In the previous two sessions, Sensex had gone up by 356.44 points.

Also, the wide-based National Stock Exchange index Nifty edged higher by 8.20, or 0.13 percent, to 6,091.35. Brokers said the sentiment remained firm on sustained buying by participants on the back of favourable corporate reports, including better earnings amid a firming trend on the other Asian bourses.

Besides, covering-up of short positions by speculators ahead of monthly expiry in the derivatives segment on Thursday also supported the upside, they said. Stocks of Sun Pharma remained in good demand and rose further by 0.63 percent to Rs 1,021.20 ahead of the quarter earnings. Shares of Coal India go up by 3.29 percent at Rs 323.80 apiece in morning trade.

In the Asian region, Japan's Nikkei gained 0.80 percent, while Hong Kong's Hang Seng rose by 0.16 percent in morning trade on Tuesday. The US markets remained closed on Monday for a public holiday.